As we have noted in many previous columns, New York has one of the most comprehensive systems for regulating health care providers of any state. It extends well beyond supervising patient safety and quality of care, and reaches into regulating the ownership and operation of hospitals, nursing homes, clinics, home health agencies, and other licensed providers. The primary purpose behind this broad exercise of the state’s police power is to assure that facilities providing care to patients be properly licensed and supervised by the Department of Health as to their operations and the quality of care that they provide.
The extent of New York State’s power over the ownership of health care providers was recently highlighted in a little-noticed decision by the New York Court of Appeals resolving a four-year-old challenge to the constitutionality of a law limiting the ability of the owners of nursing homes to withdraw equity or transfer assets from the homes without first obtaining the approval of the Commissioner of the Health Department.
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